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Just took on a client who took out pay day loans
Posted on 2/5/18 at 12:28 pm
Posted on 2/5/18 at 12:28 pm
This guy is getting hosed.....he was on disability for a while, went back to work, the bills started to pile up and he compounds it by taking out a mafia style loan(s). I had no idea that it was possible to charge the type of interest that these companies do.
On top of that he allows these guys to draft his account every 2 weeks....he's literally paying 400 a month on a 700.00 loan.
I decided to just pay it off myself, to prevent more problems for the guy . I made him call his bank and stop the ACH debit since his account is set to be debited by these people tomorrow.
Anyone in the OT know anything about these "predatory" lenders and how they operate and how they are able to essentially get away with 680% APR?
On top of that he allows these guys to draft his account every 2 weeks....he's literally paying 400 a month on a 700.00 loan.
I decided to just pay it off myself, to prevent more problems for the guy . I made him call his bank and stop the ACH debit since his account is set to be debited by these people tomorrow.
Anyone in the OT know anything about these "predatory" lenders and how they operate and how they are able to essentially get away with 680% APR?
34
Posted on 2/5/18 at 12:30 pm to KiwiHead
quote:
he's literally paying 400 a month on a 700.00 loan.
For how many months? Yeah, I am not exactly sure, but I think I read somewhere where there are some places that charge as much as almost 50% interest.
Posted on 2/5/18 at 12:30 pm to KiwiHead
Congrats on the broken kneecaps baw
Posted on 2/5/18 at 12:31 pm to KiwiHead
quote:
Anyone in the OT know anything about these "predatory" lenders and how they operate and how they are able to essentially get away with 680% APR?
Bc people are either stupid or desperate.
And loan sharks are illeagal, although more ethical than this and banks.
Posted on 2/5/18 at 12:31 pm to KiwiHead
quote:
how they operate and how they are able to essentially get away with 680% APR?
I don't understand this. They "get away with it" because dumbass people sign up and agree to it.
Posted on 2/5/18 at 12:31 pm to KiwiHead
Pretty sure 36% is the max in LA
ETA: and I disagree with having laws just to protect stupid people from themselves
ETA: and I disagree with having laws just to protect stupid people from themselves
This post was edited on 2/5/18 at 12:33 pm
Posted on 2/5/18 at 12:32 pm to KiwiHead
watch episode 2 of Dirty Money on netflix.
Posted on 2/5/18 at 12:33 pm to KiwiHead
People look at is as, "I'm getting $10,000 RIGHT NOW" They don't look at it as, "I'll end up broke in a couple months while still paying off the $10k in 3 year monthly installments of $555/month
Posted on 2/5/18 at 12:33 pm to KiwiHead
Unfortunately he agreed to the terms.
Posted on 2/5/18 at 12:33 pm to OweO
He was paying it for about a 6 month term. The guy probably clears 2500-2750 a month.
Actually still researching it as we speak. He took it out online
Actually still researching it as we speak. He took it out online
Posted on 2/5/18 at 12:33 pm to KiwiHead
A friend of mine did a title loan. Got $1300 against a $15000 truck.
If he don't pay he loses the truck.
First month he paid back $500. Well it's $95 to refinance. So it adds a $100 every month you don't pay it off. A year later and he owes $700 still.
It's crazy.
Pay day loans are only like $50. But you can refinance for $120 or so.
People with no credit and who need cash are easy targets.
If he don't pay he loses the truck.
First month he paid back $500. Well it's $95 to refinance. So it adds a $100 every month you don't pay it off. A year later and he owes $700 still.
It's crazy.
Pay day loans are only like $50. But you can refinance for $120 or so.
People with no credit and who need cash are easy targets.
Posted on 2/5/18 at 12:33 pm to KiwiHead
Payday loans were voted illegal here a few years ago.
However....all those payday loan places did was just change to title loan places.
However....all those payday loan places did was just change to title loan places.
Posted on 2/5/18 at 12:34 pm to KiwiHead
He took out a "mafia style" loan because the banks wouldn't loan it to him. 5 will get you 10 this guy has shite credit and was high risk. If he's set up on Bi-monthly autodrafts it's further evidence that he's not reliable with his payments.
This post was edited on 2/5/18 at 12:37 pm
Posted on 2/5/18 at 12:36 pm to magildachunks
Y'all remeber Western Sky financial?
It was $63,000 to pay back a $10k loan.
Do the math, it's right in the ad. 84 months of $743 for a $10k loan.
It was $63,000 to pay back a $10k loan.
Do the math, it's right in the ad. 84 months of $743 for a $10k loan.
Posted on 2/5/18 at 12:36 pm to jiffyjohnson
There is a pretty good documentary on one of these companies on Netflix. Dirty Money.
Posted on 2/5/18 at 12:36 pm to yellowfin
36% applies to loans with a term of longer than 2 years, I'm finding out
Posted on 2/5/18 at 12:37 pm to KiwiHead
It's fee driven rather than rate driven.
Some state (most recently NY and NJ to follow soon) that are changing state law to include transactional fees into the usary law calculation.
La does not, the 36% usary law in La is strictly interest.
Some state (most recently NY and NJ to follow soon) that are changing state law to include transactional fees into the usary law calculation.
La does not, the 36% usary law in La is strictly interest.
Posted on 2/5/18 at 12:37 pm to KiwiHead
Dirty Money documentary. Preying on the lower income population is big business and big trouble. Be nice to your client and help him as much as you can.
Posted on 2/5/18 at 12:37 pm to yellowfin
I agree, which is why all drugs should be legal.
Coke to wake up and heroin to go to sleep.
Coke to wake up and heroin to go to sleep.
Posted on 2/5/18 at 12:38 pm to KiwiHead
Yep. It’s pretty bad.
I worked with a lady that took out three times that. She paid 8000 for a 2000 loan and did not understand why it was a bad deal.
I worked with a lady that took out three times that. She paid 8000 for a 2000 loan and did not understand why it was a bad deal.
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